Chinese Economics Thread

[Blitzo]

Actually very cunning of China to take the aid from the World Bank and then in turn giving aid to countries that are in need, as well as reminding them that its the genorisity of the PRC, and perhaps one day the recipient may return a political favour.

Yeah, a shame that no one ever does things from good of heart anymore. Well actually no, I don't think people actually have in the history of man.

Recently I read an article (I cant remember where) that the Australians were very concerned that China could influence where the next Commonwealth games took place.

Queensland (Australia) is vying to host them along with some small city in Southern Sri Lanka whose name Ive forgotten. To come to the point the Aussies have realized that Peking who is backing this small town in Sri Lanka can influence the vote, by simply calling in the iou's from all those commonwealth countries around the world it has gained a financial influence in.

How ironic when a non Commonwealth country can actually influence what exactly happens

Oh yeah I read that as well.

I do'nt think beijing gives a hoot who gets the 2018 (was it 2018? can't remember) commonwealth games at all -- they just want good relations with aus and sri lanka simultaneously. Sri Lanka asked Beijing to back them, basically saying "hey come on, you scratch my back I'll scratch yours".

Sri Lanka has quite a scratch for china's back, because of the strategic considerations of Sri Lankan ports relative to the indian ocean and subsequent malacca straits.

In the end the votes will be by commonwealth countries, and I haven't read anything about China calling in favours from those countries they have financially assisted. Yet.

 

[bladerunner]

Oh yeah I read that as well.

I do'nt think beijing gives a hoot who gets the 2018 (was it 2018? can't remember) commonwealth games at all -- they just want good relations with aus and sri lanka simultaneously. Sri Lanka asked Beijing to back them, basically saying "hey come on, you scratch my back I'll scratch yours".

Sri Lanka has quite a scratch for china's back, because of the strategic considerations of Sri Lankan ports relative to the indian ocean and subsequent malacca straits.

In the end the votes will be by commonwealth countries, and I haven't read anything about China calling in favours from those countries they have financially assisted. Yet.

I think what the writer was suggesting is, that a count, indicated that Beijing if called upon, had the clout to swing the numbers in Sri Lankas favour i

The Dark side in me would love to see Beijing do it because

1/ Prince Charlie does'nt like Beijing, so if it came to his attention that Beijing probably influenced a commonwealth vote, it would have him crying, put of his food and gardening for months. Also a payback for the Royal familys aloofness in the returning of HK ceremonies.

2/ Awarding it to another third World country would be a poke in the eye to all those who have criticised it being held in India.

 

[Martian]

Taiwan's GDP growth to hit fastest pace in 21 years

Shopping district in Taipei, Taiwan

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"Taiwan's GDP growth to hit fastest pace in 21 years

Publication Date：09/27/2010
Source： Taiwan Today
By Audrey Wang

The Economist Intelligence Unit expects Taiwan’s gross domestic product to grow by 9.2 percent in 2010, the fastest rate in 21 years, according to the Council for Economic Planning and Development on Sept. 24th.

The EIU report noted that Taiwan’s economy grew by an average of 13.1 percent in the first two quarters of 2010. This stellar performance, the EIU said, “largely reflects the global economy’s return to health, which has translated into an upsurge in Taiwan’s exports and domestic demand.”

According to the EIU report, Taiwan should see a rapid recovery in fixed investment in the months to come, as local companies have expanded their operations in line with increases in domestic and external demand."

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"Taiwan`s Export Order Value Hits Record US $34.88 billion in August
2010/09/27

Taipei, Sept. 27, 2010 (CENS)--Thanks to the appreciation of the Japanese yen and hectic sales of iPad and iPhone, Taiwan’s export orders in August reached a record monthly high of US $34.88 billion, according to the statistics released by the Ministry of Economic Affairs (MOEA).

The August export order value surged year-on-year by 23.3%, with the increase of US $2.23 billion in IT & telecom product exports being the biggest contributor to the rise.

In the same month, orders for electronic products totaled US $8.637 billion, the highest of its kind ever recorded; and those for IT & telecom items came to US $8.515 billion, the third highest of its kind. As for LCD panels, the corresponding value totaled US $3.344 billion, the second highest.

Huang Chi-shih, director of the Statistics Department of the MOEA, disclosed that in August the overseas orders received by domestic manufacturers accounted for 50.72% of that received by the IT & telecom industry, whose overseas orders totaled 84.32%, the highest among all export items.

Huang further indicated that the booming sales of Apple`s two popular items—iPad and iPhone—have also benefited Taiwan`s related industries as IT & telecom, electronics, machinery, auto vehicles & parts, LED, flat TV sets, etc.

Huang said that the orders in August from the United States, Europe, Japan and the ASEAN focused on IT & telecom products; while those from China on electronic items. During the month, the orders from China totaled US $9.3 billion, for a year-on-year growth of 8.84%, of which US $7.676 billion were for electronic products, the highest of its kind ever recorded.

With the economic recovery, Huang predicted, the order value for the full-year might reach US $400 billion, or up 24% from last year`s US $322.44 billion.

(by Judy Li)"

 

[Maggern]

So the World Bank should only be there for Chinas use?

Whether those other 3rd world countries use the aid money as effectively as China is besides the point.My point is with 2.5trillion in the bank, she hardly needs it.

Aid to countries should have a cut off point in much the same way an individual is entitled to receive aid from the state. How far will Bill Gates or Warren Buffet get if they applied for food stamps in the U.S.

They still get loans in banks, no? I doubt the banks tell them to turn and leave the building, as there could be others out there who needs the money more...

As Hendrik says, it's a BANK. It borrows to whoever it wants, and most specifically only to clients where they are sure to get their money back, with interest. If they do, that means more money for others.

The IMF is the aid institution. And AFAIK China stopped receiving aid from them in the late 80s or 90s and is now contributing to the IMF budget.

 

[bladerunner]

They still get loans in banks, no? I doubt the banks tell them to turn and leave the building, as there could be others out there who needs the money more...

As Hendrik says, it's a BANK. It borrows to whoever it wants, and most specifically only to clients where they are sure to get their money back, with interest. If they do, that means more money for others.

The IMF is the aid institution. And AFAIK China stopped receiving aid from them in the late 80s or 90s and is now contributing to the IMF budget.

The article I read said China was getting aid from Donar countries adding up to 2.6 billion dollars 2007-2008 from a report by the OECD

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By GILLIAN WONG, Associated Press Writer Gillian Wong, Associated Press Writer – Sat Sep 25, 1:56 pm ET


.......Aid to China from individual donor countries averaged $2.6 billion a year in 2007-2008, according to the latest figures available from the Organization for Economic Cooperation and Development.

Ethiopia, where average incomes are 10 times smaller, got $1.6 billion, although measured against a population of 1.3 billion, China's share of foreign aid is still smaller than most. Iraq got $9.462 billion and Afghanistan $3.475 billion.

The aid to China is a marker of how much has changed since 1979, when the communist country was breaking out in earnest from 30 years of isolation from the West. In that year, foreign aid was a paltry $4.31 million, according to the OECD.

Today's aid adds up to $1.2 billion a year from Japan, followed by Germany at about half that amount, then France and Britain.

The U.S. gave $65 million in 2008, mainly for targeted programs promoting safe nuclear energy, health, human rights and disaster relief. The reason Washington gives so little is because it still maintains the sanctions imposed following the 1989 military crackdown on pro-democracy demonstrators at Tiananmen Square, said Drew Thompson, a China expert at the Nixon Center in Washington, D.C.

China is also one of the biggest borrowers from the World Bank, taking out about $1.5 billion a year.............

 

[Hendrik_2000]

The article I read said China was getting aid from Donar countries adding up to 2.6 billion dollars 2007-2008 from a report by the OECD

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By GILLIAN WONG, Associated Press Writer Gillian Wong, Associated Press Writer – Sat Sep 25, 1:56 pm ET


.......Aid to China from individual donor countries averaged $2.6 billion a year in 2007-2008, according to the latest figures available from the Organization for Economic Cooperation and Development.

Ethiopia, where average incomes are 10 times smaller, got $1.6 billion, although measured against a population of 1.3 billion, China's share of foreign aid is still smaller than most. Iraq got $9.462 billion and Afghanistan $3.475 billion.

The aid to China is a marker of how much has changed since 1979, when the communist country was breaking out in earnest from 30 years of isolation from the West. In that year, foreign aid was a paltry $4.31 million, according to the OECD.

Today's aid adds up to $1.2 billion a year from Japan, followed by Germany at about half that amount, then France and Britain.

The U.S. gave $65 million in 2008, mainly for targeted programs promoting safe nuclear energy, health, human rights and disaster relief. The reason Washington gives so little is because it still maintains the sanctions imposed following the 1989 military crackdown on pro-democracy demonstrators at Tiananmen Square, said Drew Thompson, a China expert at the Nixon Center in Washington, D.C.

China is also one of the biggest borrowers from the World Bank, taking out about $1.5 billion a year.............

Some people here confused Aid with Grant Though Japan give "aid" to China most of it is in the form of LOW INTEREST LOAN To buy Japanese good and service so nothing special here . The percentage of grant is really small .

As I say before all those aid are nothing but disguised Industrial export subsidy . Because most of those loan loan stipulate that the donor has the first crack in supplying good and service

Anyway Japan stop giving outright grant to China long time ago Most of the loan are used to promote conservation and Environmental preservation. Which indirectly benefit Japan. Gobi dessert sandstorm doesn't not know where the border of China end

If I am not wrong the total grant to China is 2 billion dollar over span of 20 years which small . Don't forget that Japan never pay China for war reparation. Really small potatoes for causing so much grief and destruction

 

[Martian]

Ford to Build $500 Million Engine Plant in Chongqing

"Chang'an Ford automobile factory manufactures Ford cars in Chongqing."

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"Ford to Build $500 Million Engine Plant in Chongqing
By Bloomberg News - Sep 25, 2010 4:54 AM ET

Ford Motor Co.’s China venture Changan Ford Mazda Automobile Co. signed an agreement with the Chongqing municipal government to spend $500 million to build an engine plant in the western Chinese city of Chongqing.

The planned plant will more than double Ford’s existing engine capacity in China, according to an e-mailed statement from the company.

The engine factory will be Changan Ford Mazda Automobile’s second and will add capacity of 400,000 units, according to the statement. The plant will mainly supply the venture’s vehicle-assembly lines in Chongqing, it said.

Construction will begin next year and engine production will start in 2013, Ford said in the statement.

Changan Ford Mazda Automobile is a venture between Chongqing Changan Automobile Co., Ford and Mazda Motor Corp.

To contact the editor responsible for this story: Stanley James at [email protected]"

"Ford celebrates the production of its 500,000th Focus model at its Chongqing plant."

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"Record vehicle sales are expected
BY GREG GARDNER Posted: Sept. 28, 2010
FREE PRESS BUSINESS WRITER

China's surging economy will propel global sales of cars and trucks to a record high of 69.6 million vehicles this year, according to the chief automotive economist of IHS Automotive.

"Government incentives (such as last year's cash-for-clunkers program in the U.S. and other rebates for buying more fuel-efficient cars) will drive about 1 million of those sales," said Nigel Griffiths, the IHS economist. Those incentives have ended in Italy and Germany, and will end in Japan in 2012. A group of the company's analysts met with journalists Monday in Northville.

The previous best year for global new-vehicle sales was 69.5 million in 2007, the year before the global financial meltdown triggered by the bursting of the U.S. housing market bubble.

China is now the world's largest automotive market, with 13.5 million sales last year, an increase of 45% from 2008. Nomura Securities of Japan released a report this month that China's automotive market will nearly double to 25 million vehicles by 2014.

Much of that growth will be fueled by the Chinese government's aggressive subsidies for the production and purchase of electric vehicles.

Beginning earlier this year, consumers in five large cities became eligible for discounts of $8,785 off the price of an all-electric car and about $7,320 off plug-in hybrids. The money is paid directly to carmakers, which will reduce the vehicle price.

Tianshu Xin, who is responsible for IHS's Chinese automotive research, said the government in Beijing has set a goal of putting 5 million electric vehicles on the road by 2020.

Back in the U.S., IHS expects new-vehicle sales to rebound from last year's lowest-in-27-years 10.4 million to 11.35 million for all of 2010. If that seems like a painfully slow recovery, the firm foresees a more robust demand of 12.8 million vehicles in the U.S. next year.

Griffiths said there is a less than a 25% chance for the U.S. economy to sink back into recession in the next year.

Contact GREG GARDNER: 313-222-8762 or [email protected]"

"New cars at Ford's Chongqing factory in China."

 

[bladerunner]

Problems for BYD
Sales down, Presence in America of the E6 possibly delayed, Performance of the E6 also downgraded. I wonder if the car has had a facelift, as the last time I saw a picture of one about a year ago it looked rather dated when compared to pictures of its possible rivals.
Although its stated it would do 300ks on a full charge, how much would, lights airconditioner and all other electrical options the modern car has, will downgrade the cars performance

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[Blitzo]

Problems for BYD
Sales down, Presence in America of the E6 possibly delayed, Performance of the E6 also downgraded. I wonder if the car has had a facelift, as the last time I saw a picture of one about a year ago it looked rather dated when compared to pictures of its possible rivals.
Although its stated it would do 300ks on a full charge, how much would, lights airconditioner and all other electrical options the modern car has, will downgrade the cars performance

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This is when we'll see whether BYD is as revolutionary and innovative as everyone says it is. Let's see how they do in delivery...

300km is still pretty impressive; and I'm pretty sure that would include use of the electronics -- maybe it was decreased from 400km for that exact reason?
Does anyone know whether other electric cars, such as the leaf or volt take in such considerations?
And the e6 needs better freaking bodywork, definitely.

Competitors like the Volt and Leaf, while not a ferrari or lambo, at least look somewhat complicated and futuristic.

 

[Martian]

Caterpillar: China is world's largest market for excavators in the below 8-ton class

"This 8-ton excavator comes with an air conditioned cab."

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"UPDATE: Caterpillar To Build Plant In China For Small Excavators
By Bob Tita Of DOW JONES NEWSWIRES
SEPTEMBER 28, 2010, 9:45 P.M. ET

CHICAGO (Dow Jones)--Caterpillar Inc. (CAT) said Tuesday it will build a new assembly plant in China to produce small hydraulic excavators, as the company continues to expand out its production capacity in developing regions of the world.

Construction of the new plant in Wujiang is expected to begin by the end of the year, with excavator production scheduled to start in 2012. Wujiang is in the Jiangsu Province on China's eastern coast. The company did not disclose the cost of the new plant.

Caterpillar, the world's largest manufacturer of construction equipment by sales, has been supplying the Chinese market with excavators weighing less than eight tons from plants in Xuzhou, China, and Sagami, Japan. Opening a separate plant for mini-excavators in China will free up production space for other equipment lines in the plants in Xuzhou and Sagami, the Peoria, Ill.-based company said.

"China is the world's largest market for excavators in the below 8-ton class," said Mary Bell, vice president of the Caterpillar's Building Construction Products division, which is responsible for the company's compact machinery lines.

Caterpillar has been overhauling its production sites this year to boost its manufacturing capacity in China, Brazil and other markets where the rapid construction of highways, airports, mines and public transportation infrastructure is driving demand for wheel-loaders, bulldozers, excavators and other machinery.

Caterpillar earlier this month announced that it bought a former auto assembly plant in Campo Largo, Brazil, to expand production of its backhoe loaders and small wheel loaders. The backhoe plant will allow Caterpillar to expand production of its larger construction machinery at its flagship factory in Piracicaba.

Brazil is seen as a key growth market for construction machinery in the coming years as the country ramps up construction to host the 2016 summer Olympics and the 2014 World Cup soccer tournament.

Caterpillar also plans to construct a new assembly plant for excavators in Texas to consolidate production of excavators currently being assembled at plants in Aurora, Ill., and Akashi, Japan. The move will allow the Akashi plant to focus on supplying machinery demand in the Asia-Pacific region, where sales of equipment have been surging. The Aurora plant, meanwhile, will produce a new line of hydraulic mining shovels, as Caterpillar looks to expand its presence in the global mining sector.

Caterpillar ended Tuesday's regular trading session up 0.16%, or 13 cents, at $79.67 a share.

-By Bob Tita, Dow Jones Newswires; 312-750-4129; [email protected]"